Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market. Harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Nathan Hager, joined by Bloomberg's Dan Curtis on a
Speaker 1: mostly down morning for stocks broadly. This morning, we get
Speaker 1: a couple of names moving lower on earnings, including Applied Digital.
Speaker 3: Good morning, Good morning, Nathan, Data center operator. Applied Digital
Speaker 3: is down over four percent in the pre market ticker
Speaker 3: APLD as it after it reported third quarter results with
Speaker 3: gross margins missing estimates. The company took in one hundred
Speaker 3: and twenty seven million dollars for the period, fifty million
Speaker 3: dollars more than estimates, but it's paying more as it grows.
Speaker 3: Nearly one hundred and forty million dollars were spent in
Speaker 3: operating expenses. A large portion of that was thirty nine
Speaker 3: billion dollars in stock based compensation alone. That was off
Speaker 3: of increased headcount and performance rewards. The company also saw
Speaker 3: an overall cash outflow of over seven hundred million dollars
Speaker 3: six times and times analysts outlook On the positive side,
Speaker 3: adjusted earnings per share beat, and the company noted accelerating
Speaker 3: hyperscaler demand not enough to offset the bearish move this morning.
Speaker 1: Okay, we also heard from Constellation brands. Are people drinking Dan?
Speaker 2: Well?
Speaker 3: Constellations actually been holding up better, but even they are struggling.
Speaker 3: The shares underticker STZ are down nearly one percent in
Speaker 3: pre market as the company projected softer than expected growth
Speaker 3: for its beer business this year. That's the company behind
Speaker 3: Corona and Modelo especial. It sees organic beer sales somewhere
Speaker 3: between one percent up one percent down, but Wall Street
Speaker 3: was looking for two percent growth. That shows that Modello
Speaker 3: and Corona are struggling to side step a broader decline,
Speaker 3: and beer Constellation has generally been holding it more strongly.
Speaker 3: As I mentioned, Modello passed bud Light as the top
Speaker 3: selling beer in the US. That's according to Zarkana. So
Speaker 3: people are still drinking a Medelo, but maybe just not
Speaker 3: quite as much.
Speaker 1: All right, Well, we did get some news from Amazon
Speaker 1: this morning. In the CEO letter, what do we need
Speaker 1: to know?
Speaker 3: That's right? So, Andy Jasse wrote to shareholders this morning.
Speaker 3: He highlighted the company's chip business, saying its run rate
Speaker 3: is now over twenty billion dollars and growing at triple
Speaker 3: percentage on an annual basis. That has shares flat this morning,
Speaker 3: but they were down before this letter came back, so
Speaker 3: they have paired some of those losses. He noted the
Speaker 3: company is willing to endure short term free cash flow
Speaker 3: headwinds for substantial long term growth and that spending is
Speaker 3: heavy on the capex side. Two hundred billion dollars approximately
Speaker 3: will be spent this year, and Jasse noted that that
Speaker 3: monetization will likely happen in twenty twenty seven and twenty
Speaker 3: twenty eight, so giving up a little bit now looking
Speaker 3: for longer growth.
Speaker 1: And finally, Dan, we got a headline from Tesla. Apparently
Speaker 1: Elon Musk's company is still in the EV business.
Speaker 3: Apparently it is. That's according to Reuter's which is reporting
Speaker 3: that Tesla's developing a new compact suv and they were
Speaker 3: citing people familiar. They are said to have contacted suppliers
Speaker 3: in recent weeks to discuss details. That has shares again
Speaker 3: about flat, but they were down before this news came out.
Speaker 3: Sources said that the SUV would be produced in China,
Speaker 3: and this follows earlier this year, where Tesla discontinued production
Speaker 3: of both the Model S and Model X, although those
Speaker 3: commanded high price tags.
Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with
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